JSI Tip 2881. You receive an 'Access Denied' error when encrypting a folder?

When you encrypt a folder, you receive:

An error occurred applying attributes to the file:
<Drive:>\Folder\Filename - Access is denied.

The most likely cause of this error is that a file or sub-folder has the System attribute turned on.

To fix the problem, remove the system attribute, using the attrib command:

attrib \[+r|-r\] \[+a|-a\] \[+s|-s\] \[+h|-h\] \]\[path\] filename\] \[/s\[/d

+r Sets the Read-only file attribute. 

-r Clears the Read-only file attribute. 

+a Sets the Archive file attribute. 

-a Clears the Archive file attribute. 

+s Sets the System file attribute. 

-s Clears the System file attribute. 

+h Sets the Hidden file attribute. 

-h Clears the Hidden file attribute. 

\[\[drive:\]\[path\] filename\] Specifies the location and name of the directory, file,
 or set of files you want to process. You can use wildcard characters (? and *) 
 in the filename parameter to display or to change the attributes for a group of files.

/s Processes matching files in the current directory and all of its subdirectories. 

/d Processes directories.

NOTE: Never encrypt files or sub-folders in %SystemRoot%. Doing so will likely prevent your installation from restarting.